Measuring Broadband Policy Success

Although broadband internet access is a functional prerequisite for modern civic and economic life, significant inequities in broadband access remain. The Federal Communications Commission’s most recent report on the state of broadband in America (2021 Broadband Deployment Report) finds that millions of Americans lack access to reliable broadband service, and that millions more must procure broadband service from a local monopolist. U.S. policymakers have deployed a range of programs to address these concerns. Given the scale and importance of policy interventions like the Connect America Fund (CAF) and the Broadband Equity, Access, and Deployment (BEAD) Program, it is critical to assess their efficacy. We find that the serviceability rate — i.e., the weighted fraction of CAF-funded addresses that are actually served by subsidized ISPs — is only 55 percent, dropping to as low as 18 percent in some states. Moreover, the compliance rate — i.e., the weighted fraction of CAF-funded addresses where ISPs offer service that satisfies the FCC’s program rules — is only 33 percent. In short, over two-thirds of addresses “certified” as served by the ISPs do not, in fact, appear to receive service that meets the FCC’s program rules. Regulators should interrogate ISPs’ service claims, improve audit transparency, and implement stringent requirements to ensure better service quality and consumer value. And officials might even consider past compliance with funding programs when deciding how to award subsidies in the future.